Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $9.22 million construction loan for Orchard Park of Murphy, an 84-bed assisted living center under development in Murphy, Texas.
Love Funding secured the loan through the U.S. Department of Housing and Urban Development’s Section 232 LEAN loan program. Using the program enabled the property’s owners, McFarlin Group and Caddis Partners, to lock in a non-recourse loan at a low fixed interest rate with a 40-year term.
The 75,510 square-foot facility is scheduled to open in mid-2012 and once completed will house 51 assisted living beds and 33 memory care beds.
Love Funding made use of HUD’s new modified firm application for new construction projects, which allows borrowers to skip the former pre-application process and submit architectural plans and other specifications after the initial filing and approval from HUD. The modified firm application is one way the agency is seeking to expedite approval times as demand surges for its loan insurance programs amid a dearth of private lending for capital-intensive construction projects.
Love Funding helped secure $14 million in HUD financing in May 2010 for a previous McFarlin Group/Caddis Partners project – Orchard Park of McKinney in McKinney, Texas – and the group is currently working on two other construction projects currently pending with HUD.